Cap pensionable salary at the salary employees are earning when the bill goes onto effect or the Social Security wage base, whichever is more.

Include a guarantee that the state makes its annual required contribution to the pension systems.

Once the cost of living increase returns, it would only apply to the first $25,000 of retirement incomes and would not be awarded until employees turn 67.
“The choice is clear. The time is now to end the excuses and say yes to reform for our pension systems,” said Rep. Elaine Nekritz as she presented the bill in a committee today. But that choice has been delayed for at least another day. The House adjourned this afternoon without taking up the bill. Nekritz and other supporters, including Gov. Pat Quinn, continue to lobby House members to try to find support needed to get the measure through the chamber.

House Minority Leader Tom Cross supports the legislation and emphasized the need to approve pension changes to avoid another downgrade of the state’s bond rating. “If we do nothing in the next couple days, it is inevitable that we will be downgraded.” Cross said if lawmakers fail to act before the current session ends, “our reputation continues to diminish.”

Supporters of the plan say that it must be approved to address the state’s billions of dollars in unfunded pension liability and bring down pensions costs, which are starting to crowd out other areas of spending. “It’s clear that the state cannot devote exclusively to pensions such a large portion of its budget and still maintain the functions of state government,” said Lawrence Msall, president of the Civic Federation, a Chicago-based organization that has been a major advocate for pension changes.

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